GENERAL INSURANCE INDUSTRY ANALYSIS

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GENERAL INSURANCEINDUSTRY ANALYSIS

Group 4:

1. Nastiti Nurlatifiyanti

2. Nureni Susilowati

3. Poerbaningrat

Case Study in PT Asuransi Bintang Tbk

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GENERAL INSURANCE

• Initially the system of insurance known as bottomry which existed in Phoenicia in 1200 BC. In this system, backers loaned money to merchants to finance voyages

• Insurance as we know it today took its shape in 17th century England. There was a place called Lloyd’s Coffee House in London, owned by Edward Lloyd, where merchants, ship-owners and underwriters met to discuss and transact business. The Lloyd’s Act was passed in 1871 incorporating the members of the association into a single corporate body with perpetual succession and corporate seal. It extended from marine insurance to other insurance and guarantee business. Today, Lloyd’s has become the world’s best known insurance brand.

• General insurance or non-life insurance policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to be life insurance. It is called property and casualty insurance in the US and Non Life Insurance in Continental Europe

•

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WORLD NON LIFE PREMIUM GROWTH RATE IN 2009

Source: SIGMA No 2 / 2010

Non Life Insurance premiums contracted in the industrialized country, growth slowed in the emerging markets

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NON LIFE PREMIUM REAL GROWTH RATE IN 2009


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NON LIFE TOTAL PREMIUM VOLUME IN 2009 (in USD)

Total Rank : 88 countries Source: SIGMA No 2 / 2010

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INSURANCE DENSITY IN INDONESIA


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INSURANCE COMPANIES IN INDONESIA

REMARKSNUMBER OF COMPANIES

REMARKSNUMBER OF COMPANIES

2009 2008 2009 2008

ASSET DIRECT PREMIUM

Rp 1 triliun sd Rp 5 triliun 8 8 Rp 1 triliun sd Rp 5 triliun 5 5

Rp 500 miliar sd Rp 1 triliun 11 4 Rp 500 miliar sd Rp 1 triliun 7 7

Rp 100 miliar sd Rp 500 miliar 38 41 Rp 250 miliar sd Rp 500 miliar 15 12

Less than Rp 100 miliar 28 31 Rp 100 miliar sd Rp 250 miliar 22 23

Rp 50 miliar sd Rp 100 miliar 13 15

Less than Rp 50 miliar 23 23

PROFIT

EQUITY Rp 250 miliar sd Rp 500 miliar 2 2

More than Rp 1 triliun 5 4 Rp 100 miliar sd Rp 250 miliar 5 5

Rp 500 miliar sd Rp 1 triliun 4 5 Rp 50 miliar sd Rp 100 miliar 4 4





Under Rp 40 miliar 20 22 Loss 12 10

Source: Media Asuransi

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PT ASURANSI BINTANG Tbk

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About BINTANGAs per march 2010

Didirikan : 17 Maret 1955 Aset : Rp 204.318.407 RBC : 222.74 % (Published) Kantor Pemasaran : 16 Kantor Cabang

Share Holder :

PT. Srihana Utama

PT. Warisan Kasih Bunda

PT. Ngrumat Bondo Utomo

PT. Dana Harta Keluarga

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About BINTANG Branches

MEDAN

JAKARTA

BANDUNG

SURABAYA

DENPASAR

MALANG

LAMPUNG

PEKAN BARU

SEMARANGYOGYAKARTASOLOPURWOKERTO

CIREBON

MAKASAR

KEDIRI

As per march 2010

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• Vision– The leading insurance solution provider in

profitability through technology, adaptability and creativity

• Mission– Provide added value to customer through

creative underwriting solutions and low administrative costs

– Optimizing the available technology advantages to grow the business

About BINTANG

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About BINTANG• Values

– Consciousness• Sadar dan bertanggung jawab terhadap peran dan tugas

yang diberikan oleh perusahaan – Customer Focus

• Selalu memberikan layanan yang terbaik kepada pelanggan external maupun internal

– Trust & Respect• Bekerja dengan hati yang jujur dan niat yang tulus serta

dapat dipercaya di setiap proses kerja – Spirit

• Senantiasa semangat dalam pencapaian tujuan bersama yang telah ditetapkan perusahaan

– Teamwork• Saling membantu, menghormati dan menghargai baik

sesama rekan kerja maupun pihak lain yang bekerja sama

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Dalam jutaan rupiah, kecuali:*) Tahun 2009 dan 2008 berdasarkan PMK No. 158/PMK.010/2008 **) Dalam jutaan lembar sahamTahun 2005 - 2007 berdasarkan PMK No. 135/PMK.06/2005 ***) Dalam rupiah

Rasio Keuangan 20052006200720082009

2005Per 31 Desember 2006200720082009

Jumlah Investasi 85.095 104.662 78.644 89.804 83.191Jumlah Aktiva 186.854 200.328 181.709 182.528 174.682Jumlah Kewajiban 96.116 116.106 108.129 95.842 100.187Pinjaman Subordinasi 3.478 4.064 - - -Jumlah Modal Sendiri 87.235 80.132 73.555 86.661 74.47Rasio Pencapaian Solvabilitas *) 240,08% 143,07% 122,59% 211% 182%Premi Bruto 145.091 157.062 200.425 174.658 170.039Premi Netto 56.717 66.968 101.074 99.595 101.311Komisi Netto 13.986 16.151 33.903 27.621 23.458Beban Klaim Netto 25.018 32.758 65.216 43.477 38.249Hasil Underwriting 20.947 24.6 3.876 30.849 28.944Hasil Investasi 18.644 23.489 9.067 5.236 5.148Beban Usaha 43.662 36.149 36.273 36.812 35.45Laba Usaha -4.072 11.94 -23.33 -727 -1.358Pendapatan Lain-lain 1.538 3.41 2.031 157 3.579Laba Sebelum Pajak -2.534 15.35 -21.299 -571 2.221Laba Bersih 3.637 5.968 -12.296 1.288 3.206Jumlah Saham Terdaftar **) 174,19 174,19 174,19 174,19 80,5Laba Bersih Per Saham ***) 21 34 -71 7 40

Jumlah Modal Sendiri / Premi Neto 153,81 119,66 72,77 87,01 73,51Laba Bersih / Jumlah Aktiva 1,95 2,98 (6,77) 0,71 1,84Laba Bersih / Modal Sendiri 4,17 7,45 (16,72) 1,49 4,31Hasil Underwriting / Premi Bruto 14,44 15,66 1,93 17,66 17,02Jumlah Kewajiban / Jumlah Aktiva 51,44 57,96 59,51 52,51 57,35Jumlah Kewajiban / Modal Sendiri 110,18 144,89 147,01 110,59 134,53P/E Ratio 16,9X 10,58X (4,46 X) 67,60 X 11,75 X

Financial Highligths

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PT Asuransi Bintang Tbk and General Insurance Prospect

in Indonesia

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PEST ANALYSIS

Politics

Peristiwa politik dan sosial yang terjadi di Indonesia saat ini dapat memberi dampak merugikan pada kegiatan bisnis secara umum di Indonesia. Kesadaran berdemokrasi yang seringkali salah arah menjadi kerusuhan dan destruktif. Ketidakpastian politik, gejolak sosial dan sipil yang tercermin dengan adanya sejumlah kejadian dalam beberapa tahun terakhir. Namun khusus bagi industri asuransi kerugian, hal ini juga bisa membuka peluang bisnis, perlindungan terhadap resiko huru hara, kerusuhan, terorisme dan sabotase

1. Situasi Politik

Kebijakan modal minimum yang akan mengakibatkan perusahaan harus melakukan langkah strategis untuk menambah modal, sesuai data Bapepam LK, modal dibawah Rp 40 miliar ada 23 asuransi umum dan 12 asuransi jiwa

Tidak ada jaminan bahwa situasi politik di Indonesia akan stabil atau Pemerintah akan menerapkan kebijakan ekonomi yang kondusif untuk mempertahankan pertumbuhan ekonomi atau yang tidak berdampak negatif terhadap kondisi regulasi asuransi

2. Regulasi pemerintah

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PEST ANALYSIS

Economics

Secara kumulatif, pertumbuhan ekonomi Indonesia semester I-2010 dibandingkan dengan semester I-2009 tumbuh sebesar 5,9 persen. Hal ini memberikan situasi yang kondusif bagi perkembangan industri asuransi

1. Pertumbuhan ekonomi

2. Trend kenaikan pendapatan premi asuransi kerugian Secara umum, industri asuransi kerugian masih mengalami pertumbuhan.

Premi bruto tahun 2009, tercatat sebesar Rp23,13 triliun, tumbuh sebesar 5,7 % dari tahun 2008.

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PEST ANALYSIS

Social

2. Rasio Premi asuransi Kerugian terhadap PDB

Masyarakat Indonesia yang mengunakan asuransi masih sangat kecil hanya 12-13 juta orang atau sekitar 5% dari jumlah penduduk Indonesia yang sekitar 230 juta orang.

1. Kesadaran berasuransi yang masih kurang dalam masyarakat

KETERANGAN 2002 2003 2004 2005 2006 2007 2008 2009PDB pada harga berlaku (Rp miliar)

1,610,600

2,045,900

2,261,700

2,785,000

3,338,200

3,957,400

4,954,000

5,613,400

Pendapatan perkapita (Rp.)

7,629,559

9,515,814

10,455,827

12,705,060

15,023,943

17,500,000

21,700,000

24,300,000 Premi Netto Asuransi Kerugian

4,590

4,791

5,753

6,985

7,418

8,424

9,808

11,427

Rasio Premi asuransi kerugian thd PDB

0.285

0.234

0.254

0.251

0.222

0.213

0.198

0.204

Sumber: Majalah investor

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PEST ANALYSIS

Technologi

Pemanfaatan tehnologi terbaru untuk mempermudah akses terhadap asuransi bagi konsumen

Dukungan tehnologi mampu mempercepat proses bisnis asuransi

Perkembangan tehnologi memberikan kontribusi positif pada perkembangan asuransi kerugian

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FIVE FORCES ANALYSIS Factors Affecting Rivalry Among Existing Competitors

Characterization

(current) Future Trend1. Degree of seller concentration? High High2. Rate of industry growth? Medium High3. Significant cost differences among firm? Low Low4. Excess capacity? Medium Medium5. Cost structure of firm : sensitivity of costs to capacity utilization? Low Low6. Degree of product differentiation among sellers ? Low low Brand loyalty to existing sellers? Cross-price Medium Medium elasticities of demand among competitors in industry? High High7. Buyers' costs of switching from one competitor to another? Low Low8. Are prices and term of sales transactions observable? High High9. Can firm adjust prices quickly? High High10. Large and/or infrequent sales orders? Low Low11. Use of "facilitating practices" (price leadership, advance announcement of price changes)? Low Low12. History of "cooperative" pricing? Low Low13. Strength of exit barriers? Low Low14. High industry price elasticity of demand? High High

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FIVE FORCES ANALYSIS

Factors Affecting The Threat of Entry

Characterization

(current) Future Trend1. Significant economic of scale? Low Low2. Importance of reputation or established brand loyalties in purchase decision?

High High

3. Entrants' access to distribution channels? Medium Medium4. Entrants' access to raw materials? Medium Medium5. Entrants' access to technology/know-how? Low Low6. Entrants' access to favorable locations? Low Low7. Experience-based advantages of incumbents? High High8. Network externalities: demand-side advantages to incumbents from large installed base?

High High

9. Government protection of incumbents? High High10. Perception of entrants about expected retaliation of incumbents/reputations of incumbents for "toughness"?

Low Low

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Factors Affecting or Reflecting Pressure from Substitute Products and Support from Complements

Characterization

(current)Future Trend

1. Availability of close substitutes? Medium Medium

2. Price-value characteristics of substitutes? Medium Medium

3. Price elasticity of industrial demand? Medium Medium

4. Availability of close complements? low Low

5. Price-value characteristics of complements? low Low

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Factors Affecting or Reflecting Power of Input Suppliers

Characterization

(current) Future Trend1. Is supplier industry more consentrated than industry it sells to? low low2. Do firms in industry purchase relatively small volume relatively to other customers of supplier? Is typical firm's purchase volume small relative to sales of typical supplier? high high3. Few substitutes for suppliers input high high4. Do firms in industry make relationship-specific investment low low to support transactions with specific suppliers? 5. Do Suppliers pose credible threat of forward integration? high high

6. Are suppliers able to price-discriminate among prospective customers according to ability/willingness to pay for input? high high

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FIVE FORCES ANALYSISFactors Affecting or Reflecting Power of Buyers

Characterization

(current) Future Trend1. Is buyers's industry more consentrated than the industry it purchase from? High High2. Do buyers purchase in large volume? Does a buyer's purchase

volume represent a large fraction of the typical seller's sales revenue? High High3. Can buyers find substitutes for industry's product? Low Low

4. Do firms in industry make relationship-specific investment

to support transactions with specific buyers? High High5. Is price elasticity of demand of buyer's product high or low? High High

6. Do buyers pose credible threat of backward integration? high High

7. Does product represent significant fraction of cost in buyer's low low

business? 8. Are the prices in market negotiated between buyers and sellers high high

on each individual transaction, or do sellers post a "take-it-or-leave-it" price that applies to all transactions?

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SWOT ANALYSIS

Strength1. Relationship Management & Account Officer

Memberikan pelayanan dan pengembangan dalam hal produk maupun melayani nasabah secara langsung sehingga proses dilapangan menjadi lebih fokus dan efesien

Tim Khusus untuk merancang dan mengembangkan produk-produk terbaru (Tailor Made Products) yang menghasilkan produk asuransi yang pas dengan kebutuhan Nasabah

2. Product Development Comittee

3. Claim Center Memberikan pelayanan focus dengan cepat dan tepat kepada setiap Nasabah, dengan menggunakan sistem standard pelayanan terdiri dari 2 (dua) team ; Klaim Non Motor ( Non MV ) Klaim Motor

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SWOT ANALYSIS

Comprehensive Solution dari business Automation sampai Business to Business (B2B) interaction melalui jaringan internet ataupun VPN ; Real Time on Line Automatic Integrated Policy Issuance Automatic payment reconciliation and reporting Periodic billing & CRM automatic feed Host to Host (H2H) billing & Online Payment Online Employee Benefit Portal

4. Information Technology

5. Customer Service & Call Center Tim yang berdedikasi memberikan kesempurnaan pelayanan kepada setiap

Nasabah Penerapan Standarisasi Tinggi merupakan hal utama bagi kami, dan hal tersebut

terwujud dalam Penghargaan selama 3 tahun berturut - turut

Strength

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SWOT ANALYSIS

Strength

Menggunakan IP Based System, Recording / Voice Logger system Auto Billing Payment System

6. Telemarketing

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SWOT ANALYSIS

Weakness Kantor cabang / point of sales masih terkonsentrasi di pulau Jawa

1. Jaringan Distribusi yang terbatas

Sistem regenerasi belum berjalan dengan baik, sehingga ketika ada pengurangan/kehilangan karyawan tidak mudah mencari penggantinya

2. Sistem Regenerasi

Keterbatasan modal mengakibatkan berkurangnya pilihan resiko yang bisa ditanggung, jika dibandingkan dengan asuransi asing (multinasional)

3. Permodalan

idealnya beralih dari “short term/hit and run marketing” menjadi “long term marketing/ customer relationship”

4. Lemahnya ”public relations” untuk mengkomunikasikan keunggulan

Keterbatasan back up reasuransi5. Seringkali terlambat untuk menanggapi perubahan kebutuhan pasar

Hasil investasi yang kurang memuaskan6. Investasi yang belum dikelola dengan baik

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SWOT ANALYSIS

Opportunities1. Meningkatnya kebutuhan jasa suransi karena perkembangan ekonomi

2. Berkembangnya industri pembiayaan (financing) memberikan pangsa pasar baru bagi asuransi kerugian, terutama jenis kendaraan

3. Wilayah Indonesia yang termasuk rawan bencana, meningkatkan kebutuhan masyarakat akan perlindungan asuransi property, seperti gempa bumi, banjir, angin puting beliung, tanah longsor, dll

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SWOT ANALYSIS

Threats1. Globalisasi ekonomi menyebabkan asuransi lokal harus berhadapan langsung dengan

asuransi asing yang mempunyai permodalan lebih kuat (AFTA)

2. Persaingan harga antar perusahaan asuransi kerugian yang cenderung semakin tidak sehat

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CONCLUSIONMACRO ENVIROMENT

INDUSTRY COMPETITIVENESS

INTERNAL RESOURCES & CAPABILITY

REMARKS SITUATION FORCE THREAT TO PROFIT REMARKS

Politics Conducive Internal Rivalry High Strength High

Economics Conducive Entry High Weakness Low

Social Non-Condusive Substitutes / Complements Medium Opportunity Strong

Technology Conducive Supplier power Low Threat Low

Buyer Power High

Strategy Aggressive1. Membangun SOP dengan melakukan benchmark terhadap perusahaan sejenis

untuk menembus barrier budaya2. Memperluas jaringan dengan membuka lebih banyak point of sales3. Mengaktifkan kembali sistem rekruitmen reguler (Management Trainee)4. Menginvestasikan dana yang terkumpul di instrumen investasi yang memberikan

keuntungan lebih besar dengan tetap menjaga keamanan investasi

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REFERENCES

• Besanko, David et al., 2007. Economics of Strategy 4th edition, John Wiley & Sons, Inc. New York

• Thomson, A.A. Strickland A.J III, and Gamble, JE 2010. Crafting and Executing Strategy: The Quest for Competitive Advantage 17th Ed. Boston: McGraw-Hill-Irwin

• www.asuransibintang.com• www.swissre.com• www.wikipedia.com• www.bps.go.id• Majalah Infobank No 376, Juli 2010• Majalah Investor edisi XII/205, Juli 2010• Majalah Media Asuransi edisi 233, Juni 2010, Tahun XXXI

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Thank You

GENERAL INSURANCE INDUSTRY ANALYSIS

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